Government plans for energy tariffs are a barrier to competition

Limiting energy companies to offering just four tariffs is extremely misguided

Commenting on today’s government energy tariff announcements, Mark Littlewood, Director General at the Institute of Economic Affairs, said:

“If the government wants to bring down energy prices then the best strategy would be to put an end to its incoherent green strategies. These illogical policies will be adding 26% to domestic electricity prices by the end of this Parliament, and 10% to gas prices.

“Moreover, limiting energy companies to offering just four tariffs is extremely misguided. Restricting the tariffs companies can offer will constrain consumer choice and have the perverse effect of pushing prices up for some households.

“The government must stop the meddling it has already engaged in. Disruptive competition is necessary to a thriving market. These policies are effectively a tax on competition.”

The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.

The IEA is a registered educational charity and independent of all political parties.